Non-execs developing a 'tick box' culture
Study finds corporate governance changes have led to a 'play safe' culture among non-execs
Attempts to shake up corporate governance across UK plc have led to a ‘play
safe’ culture among non-executives and a lack of clarity surrounding the role of
non-executive directors, a new study has found.
Two years since the publication of the Higgs Report and its recommendations
to increase the transparency of boards, a study from Roffey Park Institute
suggested that an over-focus on compliance has led to a box-ticking culture and
a reluctance to question among many non-executives.
Many non-executives view the role as more onerous since the Higgs report,
pushing up remuneration, increasing workloads and generally putting people off
the idea of a non-executive role.
The report also said too many chairmen still recruit NEDs from among their
acquaintances.